Crypto Market Sinks as Leveraged Longs Unwind, ETH Slips Below $4,300

23 September 2025, 06:35

Share on:

Key Takeaways:

*BTC broke below $115,000 and ETH lost over 5%, with $50M in ETH longs liquidated, dragging total crypto market cap under $4T.

*A $440M spot-led cascade hit ETH liquidity, sparking forced unwinds and amplifying downside momentum.

*Traders await Powell’s speech and Friday’s PCE inflation print as key drivers for near-term crypto direction.

Market Summary:

The cryptocurrency market faced a sharp correction, with Bitcoin breaking below the critical $115,000 support level and Ethereum declining more than 5% to trade under $4,300. The sell-off suggests a potential near-term reversal for ETH, which had previously shown strength, and reflects deteriorating sentiment across digital asset markets.

The downturn was initially triggered by a spot-led selling cascade totaling approximately $440 million, which eroded liquidity in Ethereum and spread to major altcoins. The move accelerated as overleveraged long positions were liquidated, with more than $50 million in ETH long contracts wiped out during Asian trading hours. Total cryptocurrency market capitalization fell below $4 trillion, highlighting the intensity of the downward pressure.

Market sentiment remains fragile, with the Crypto Fear & Greed Index lingering in neutral-to-fear territory for several consecutive weeks. The lack of positive catalysts has limited institutional and retail inflows, leaving the market vulnerable to further deleveraging.

Traders are now focusing on upcoming macroeconomic cues for direction, including a scheduled speech by Federal Reserve Chair Jerome Powell tomorrow and Friday’s release of the U.S. Personal Consumption Expenditures (PCE) inflation report. A hotter-than-expected inflation print could reinforce hawkish Fed expectations, potentially extending the crypto market’s retreat, while a dovish signal may help stabilize prices.

Technical Analysis

ETH, H4

Ethereum has extended its recent sell-off, declining nearly 5% in the latest session and breaking below the critical support level at $4,435. The move effectively erases all gains from the previous week and signals a deterioration in near-term sentiment, with the cryptocurrency now testing a key liquidity zone around $4,280.

A failure to hold above this level would mark a significant shift in market structure and likely open the path toward the psychologically important $4,000 threshold. The decline was accompanied by elevated volume, suggesting broad-based selling rather than isolated position unwinding.

Momentum indicators are aligned with the bearish price action. The Relative Strength Index has declined into oversold territory, reflecting intensified selling pressure, while the Moving Average Convergence Divergence has failed to cross above its zero line and is trending lower, confirming that downward momentum is accelerating.

A sustained break below $4,280 would likely trigger further technical selling, with the next major support level seen near $4,000. Conversely, a recovery above $4,435 would be needed to signal a potential reversal of the current bearish bias.

Resistance Levels:4335.00, 4556.00

Support Levels: 4080.00, 3866.00